Nov. 17NEW YORK  American Honda Motor Co. said Tuesday it has signed a contract with the state of New York for leasing two hydrogen-powered fuel-cell vehicles for two years.

The 2005 FCX vehicle developed by Honda converts compressed gaseous hydrogen into electricity for motive power, with water as its only emission. The water was a problem in subfreezing temperatures, but Honda has developed technology that makes it possible to operate the vehicle in the state year-round.

Honda has leased out 20 environmentally friendly fuel-cell vehicles in Japan and the United States. But New York state is the first place in which they will run where temperatures fall well below zero in winter.

Honda is expected to deliver the first vehicle to the state in December and the second in mid-2005.

New York Gov. George Pataki said during a ceremony for signing the contract that fuel-cell vehicles have "the potential to revolutionize the transportation and energy industries" and the state is proud of playing a major role in promoting next-generation clean vehicles.

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